egolinews.com

Lihir Gold Limited (LGL) said that its reserves at Lihir Island increased by 7.5 million ounces by 30 June 2009. The gold miner reported ore reserves had hit 28.8 million ounces.

Lihir highlighted several reasons for the 36% increase in ore reserves including successful drilling programs and an increase in reserves inventory through expansion and refinement of the proposed pit shell.

CEO Arthur Hood said that the increase in reserves reflects the quality of the Lihir Island ore body.

“It also confirms the benefits of the initiatives that have been put in place over the past few years to lift production at Lihir Island and improve the economics of the project,” Mr Hood said.

The miner also said other factors came into play including adjustments to cost assumptions of mining and processing costs offset by the cost benefits from the Million Ounce Plant upgrade project currently under construction.

At the close Monday, Lihir Gold shares were trading at $3.06.

Filed under:
Materials and Resources, News and Views by egoli